CFS Retail figures defy sector gloom

CFS Retail Property Trust
has gone on the front foot, announcing steady retail sales growth over the six-month period to June 30.

The shopping centre landlord had released the figures ahead of its annual results “in light of the negative market sentiment surrounding retail sales", said Colonial First State Global Asset Management managing director for property, Darren Steinberg. “We believe that quality shopping centres . . . are picking up a greater market share of retail sales."

The best performing shopping centres in CFS Retail’s portfolio were Chatswood Chase in Sydney and Chadstone, Rockingham and Northland in Melbourne.

Comparable moving annual turnover (MAT) growth for the shopping centre portfolio was 1.5 per cent over the 12 months to June 30.

“Over the last six months, total comparable retail specialty MAT has moved from negative territory at December 2010 of [negative] 1 per cent to the end the financial year up 2 per cent," CFS Retail fund manager Michael Gorman said.

Goldman Sachs analysts said des­pite weak retail conditions, regional mall portfolios “had appeared positioned for a cyclical recovery in retail sales growth off the lowest trough levels in a decade at December 2010".

The broker said the sales growth figures were significant in two ways.

“The underlying portfolio is back to showing specialty store sales growth at a positive level and with encouraging acceleration," Goldman Sachs said.